Thursday, May 27, 2010

Magnetic Stripes Being Made More Secure

Computerworld - As news of Wal-Mart Stores Inc.'s plan to convert its U.S. payment terminals to smartcard-compatible systems surfaced, there was also news of efforts to make existing magnetic stripe cards more secure.

One effort that appears to have made considerable progress involves a card authentication technology that uses information from the magnetic stripe on the back of each card to create a unique digital fingerprint of the card. Each time the card is used, information from its magnetic stripe is matched with its fingerprint. The technology is designed to use data about stolen cards to detect and stop the use of counterfeit cards at the payment terminal.

A major U.S. retailer will be announcing its support for the technology within the next one month or so, said Tom Patterson, chief security officer at MagTek Inc., a Seal Beach, Calif.-based vendor of card readers, check scanners, PIN pads and other electronic payment and identification products. Patterson said the unnamed retailer is equipping about 30,000 of its outlets with payment terminals featuring a MagTek technology that captures specific magnetic stripe information and compares it to a baseline "fingerprint," stored by the card issuer, for that card. Fifth Third Bank piloted similar technology with Visa last year.

Continue Reading at Computerworld

Magnetic Stripes Being Made More Secure

One effort that appears to have made considerable progress involves a card authentication technology that uses information from the magnetic stripe on the back of each card to create a unique digital fingerprint of the card. Each time the card is used, information from its magnetic stripe is matched with its fingerprint. The technology is designed to use data about stolen cards to detect and stop the use of counterfeit cards at the payment terminal.

A major U.S. retailer will be announcing its support for the technology within the next one month or so, said Tom Patterson, chief security officer at MagTek Inc., a Seal Beach, Calif.-based vendor of card readers, check scanners, PIN pads and other electronic payment and identification products. Patterson said the unnamed retailer is equipping about 30,000 of its outlets with payment terminals featuring a MagTek technology that captures specific magnetic stripe information and compares it to a baseline "fingerprint," stored by the card issuer, for that card. Fifth Third Bank piloted similar technology with Visa last year.

Continue Reading at Computerworld

Durbin Warns Visa and MC About "Serious Antitrust Concerns"

Illinois Senator, Dick Durbin used the "A word" when warning Visa/MC (and his comments suggest he has both under his microscope.) An interesting move by the Senator to say the least. I must say, he knows the dynamic duopoly's soft-spot.

Antitrust lawsuits are to Visa and MasterCard what Kryptonite is to Superman. (with apologies to the Dynamic Duo)

Antitrust Lawsuits are to Visa/MC what Kryptonite is to Superman

CHARLOTTE, N.C., May 27 (Reuters) - The author of a U.S. Senate proposal to limit debit card network fees said Visa Inc (V.N) and MasterCard (MA.N) Inc could raise "serious antitrust concerns" if they punish small banks that use their payment networks.

Illinois Democrat Richard Durbin sent a letter to Visa and MasterCard's chief executives accusing the companies of trying to "frighten" small banks into opposing his plan to cap fees that merchants pay when customers pay with their debit cards.

"I would caution you not to collude with your largest member banks to change your fees and rules in an effort to protect the big banks against competition from smaller card-issuing banks," Durbin wrote. "Such steps would also raise serious antitrust concerns."

In a related story, Businessweek quoted Senator Durbin as follows:

May 27 (Bloomberg) -- Visa Inc. and MasterCard Inc., the world’s biggest payment networks, should “stop threatening small banks” into opposing limits on debit-card interchange fees, and may raise antitrust issues if they “collude” with larger banks, U.S. Senator Richard Durbin said.

“If your companies were to coordinate such punitive actions in the same way that you appear to have coordinated your messaging tactics, serious concerns would be raised that you are engaging in an unlawful restraint of trade,” Durbin, the Illinois Democrat and majority whip, said today in a letter to the chief executive officers of San Francisco-based Visa and Purchase, New York-based MasterCard.

Durbin Warns Visa and MC About "Serious Antitrust Concerns"

Antitrust Lawsuits are to Visa/MC what Kryptonite is to Superman

"I would caution you not to collude with your largest member banks to change your fees and rules in an effort to protect the big banks against competition from smaller card-issuing banks," Durbin wrote. "Such steps would also raise serious antitrust concerns."

In a related story, Businessweek quoted Senator Durbin as follows:

May 27 (Bloomberg) -- Visa Inc. and MasterCard Inc., the world’s biggest payment networks, should “stop threatening small banks” into opposing limits on debit-card interchange fees, and may raise antitrust issues if they “collude” with larger banks, U.S. Senator Richard Durbin said.

“If your companies were to coordinate such punitive actions in the same way that you appear to have coordinated your messaging tactics, serious concerns would be raised that you are engaging in an unlawful restraint of trade,” Durbin, the Illinois Democrat and majority whip, said today in a letter to the chief executive officers of San Francisco-based Visa and Purchase, New York-based MasterCard.

Will Banks Finally Embrace Chip and PIN Technology after Walmart Announcement?

Will Banks Wake up to the Idea of Chip and PIN in the US?

A couple of interesting developments have occurred as of late demonstrating a possible momentum shift towards Chip and PIN technology here in the U.S. Last month, Bell ID and ACI Worldwide announced that they had secured their first North American Banking customer.

First Joint Customer for ACI Worldwide/Bell ID Strategic Partnership

New York, N.Y. – 28 April 2010 – ACI Worldwide, Inc. (Nasdaq: ACIW) and Bell ID, both leading international providers of electronic payments software and solutions, announced today that the two companies have contracted with the first customer as part of their strategic partnership launched late last year. See: ACI Worldwide Announces Alliance with Bell ID to Provide Smart Card Solutions. A financial institution in North America has selected the ANDiS4EMV solution for EMV card management, as a long-term investment in card issuing and to ensure it can always respond to changing customer and market demands. Read more...

Soon thereafter, Walmart announced that they want Chip and PIN here in the U.S. Last week, Storefront Backtalk had this report from the Smart Card Alliance event here in Scottsdale:

Wal-Mart: “It’s Time For Chip-And-PIN In The U.S.”

With major card brands and the banks strongly opposed to Chip-and-PIN efforts in the United States, there’s only one way it’s going to happen–and that happened Wednesday (May 19): Wal-Mart publicly forced the issue. When the world’s largest retailer insists on a path, even Visa has to listen. And Wal-Mart is now insisting on a domestic Chip-and-PIN (EMV) program. Jamie Henry, Wal-Mart’s director of payment services, told attendees of a panel discussion held Wednesday at a Smart Card Alliance event in Scottsdale, Ariz. “Wal-Mart’s POS hardware is 100 percent Chip-and-PIN capable. Our hardware is in place,” although the software needs some work. “We are working on implementing it in the U.S. It’s time for Chip-and-PIN in the U.S. Let’s get a roadmap and move it forward here in the United States.”

So we have Walmart backing Chip and PIN and a yet to be announced "North American Bank" who is going to be issuing EMV cards managed by Bell ID's ANDiS4EMV solution, one that is extremely popular in Europe.

Is this the beginning of the end of magnetic striped cards? Not quite yet. Now we are hearing that, as smartcards loom, there is an effort underway to make existing magnetic stripe technology more secure.

Computerworld - As news of Wal-Mart Stores Inc.'s plan to convert its U.S. payment terminals to smartcard-compatible systems surfaced, there was also news of efforts to make existing magnetic stripe cards more secure. One effort that appears to have made considerable progress involves a card authentication technology that uses information from the magnetic stripe on the back of each card to create a unique digital fingerprint of the card. Each time the card is used, information from its magnetic stripe is matched with its fingerprint. The technology is designed to use data about stolen cards to detect and stop the use of counterfeit cards at the payment terminal. A major U.S. retailer will be announcing its support for the technology within the next one month or so, said Tom Patterson, chief security officer at MagTek Inc., a Seal Beach, Calif.-based vendor of card readers, check scanners, PIN pads and other electronic payment and identification products. Patterson said the unnamed retailer is equipping about 30,000 of its outlets with payment terminals featuring a MagTek technology that captures specific magnetic stripe information and compares it to a baseline "fingerprint," stored by the card issuer, for that card. Fifth Third Bank piloted similar technologywith Visa last year.

Meanwhile, FierceFinanceIT reports that an underlying factor in the decision to stick with magstripe technology vs. the more secure smart card technology has to do with lie-ability. (sic)

From FierceFinanceIT:

Chip-and-PIN smartcard technology has not really taken off with banks, despite some obvious security advantages. But are we at an inflection point?

Wal-Mart is reportedly planning on making all its payment terminals in the U.S. compliant with a smartcard-based credit card (credit card news) technology that is widely used around the world but isn't common in the U.S. Given the retailers heft, this just might prompt banks to finally embrace the technology.

Banks have had reason to stick with the old magnetic stripe technology for several reasons, one of which has to do with the ultimate liability. Some have argued that because card issuers are not liable for losses that stem from their use of static cards (which are much cheaper than smartcards), they have chosen not to embrace chip-and-PIN. Another issue is the cost of conversion.

Of course, the new terminals to be installed at Wal-Mart will not be of any use if banks decide not to upgrade. We may see some coordinated activity and timetable soon. For security reasons, U.S. banks may not be able to stick with the old technology for much longer. That said, the industry has already invested in safer magnetic stripes, so the decision is not straightforward.

For more:

- here's a ComputerWorld article

Will Banks Finally Embrace Chip and PIN Technology after Walmart Announcement?

Will Banks Wake up to the Idea of Chip and PIN in the US?

First Joint Customer for ACI Worldwide/Bell ID Strategic Partnership

Wal-Mart: “It’s Time For Chip-And-PIN In The U.S.”

With major card brands and the banks strongly opposed to Chip-and-PIN efforts in the United States, there’s only one way it’s going to happen–and that happened Wednesday (May 19): Wal-Mart publicly forced the issue. When the world’s largest retailer insists on a path, even Visa has to listen. And Wal-Mart is now insisting on a domestic Chip-and-PIN (EMV) program. Jamie Henry, Wal-Mart’s director of payment services, told attendees of a panel discussion held Wednesday at a Smart Card Alliance event in Scottsdale, Ariz. “Wal-Mart’s POS hardware is 100 percent Chip-and-PIN capable. Our hardware is in place,” although the software needs some work. “We are working on implementing it in the U.S. It’s time for Chip-and-PIN in the U.S. Let’s get a roadmap and move it forward here in the United States.”

Computerworld - As news of Wal-Mart Stores Inc.'s plan to convert its U.S. payment terminals to smartcard-compatible systems surfaced, there was also news of efforts to make existing magnetic stripe cards more secure. One effort that appears to have made considerable progress involves a card authentication technology that uses information from the magnetic stripe on the back of each card to create a unique digital fingerprint of the card. Each time the card is used, information from its magnetic stripe is matched with its fingerprint. The technology is designed to use data about stolen cards to detect and stop the use of counterfeit cards at the payment terminal. A major U.S. retailer will be announcing its support for the technology within the next one month or so, said Tom Patterson, chief security officer at MagTek Inc., a Seal Beach, Calif.-based vendor of card readers, check scanners, PIN pads and other electronic payment and identification products. Patterson said the unnamed retailer is equipping about 30,000 of its outlets with payment terminals featuring a MagTek technology that captures specific magnetic stripe information and compares it to a baseline "fingerprint," stored by the card issuer, for that card. Fifth Third Bank piloted similar technologywith Visa last year.

Meanwhile, FierceFinanceIT reports that an underlying factor in the decision to stick with magstripe technology vs. the more secure smart card technology has to do with lie-ability. (sic)

From FierceFinanceIT:

Chip-and-PIN smartcard technology has not really taken off with banks, despite some obvious security advantages. But are we at an inflection point?

For more:

- here's a ComputerWorld article

Debit-Card Cap Interferes With Benefit Payments, Nebraska Says

Image via CrunchBase

Businessweek reports:

By Peter Eichenbaum

May 27 (Bloomberg) -- A U.S. Senate proposal to limit debit-card “swipe” fees could increase costs to taxpayers and harm citizens who receive benefits on prepaid cards, according to Nebraska Treasurer Shane Osborn.

Lowering the fees paid by merchants may discourage banks from issuing the cards that governments use to disburse money to senior citizens and needy families, Osborn wrote in a letter to lawmakers yesterday. The measure, part of the financial overhaul bill, directs the Federal Reserve to ensure that debit-card swipe fees, or interchange, are “reasonable and proportional” to the cost of processing transactions.

“A regulated debit interchange rate would decrease or eliminate the ability of financial institutions to offer these cost-effective programs to the public sector,” Osborn wrote. “Financial institutions issuing these cards may raise fees on cardholders or states to recoup lost revenue.”

Continue Reading at Businessweek

Debit-Card Cap Interferes With Benefit Payments, Nebraska Says

Image via CrunchBase

CARTES & IDentification 2010 Celebrates Its 25Th Anniversary with the Theme of Innovation

From 7th to 9th December 2010 Paris Nord Villepinte exhibition centre

CARTES & IDentification 2010

PARIS--(BUSINESS WIRE)--"Business, Innovation, Foresight and Celebration" will set the tone of the 25^th CARTES & IDentification trade show, the world’s leading event for digital security, smart technologies, payment and contactless which will open its doors in Paris from 7^th to 9^th December 2010. A real focal point for innovation, the 20,000 visitors and 1,300 delegates expected will be the very first to discover all the latest news from the international market of smart technologies and identification from the 500 companies present at the reference event.

25 years already

Launched in 1986, just a few years after the first smart cards appeared, the CARTES trade show in Paris brought together a handful of experts for a programme of strategic conferences covering payment and e-money.

Over its 25years, CARTES has certainly grown up and undeniably established itself as the international event bringing together the entire digital security, payment and contactless community. The event has become the trend setter for the global market and the sector’s innovations.

Taking advantage of the festive atmosphere which will already prevail in Paris in early December, we will be fittingly celebrating 25 years of the trade show. Those three intense days will provide a special opportunity to combine socializing and networking, with informative conferences without forgetting a few amusing retrospectives and original events.

2010: The Internet of Things is setting up camp

For the 2010 event, the CARTES trade shows and congress are offering new inroads into new markets.

M2M and radio communications technologies enabled a growing number of “things” to exchange data without human intervention. The Internet of Things was born. The potential is significant and the challenges in terms of communication methods (M2M, RFID, NFC, WIFI, ZIGBEE, etc.), auto ID, network infrastructure, data and data transfer security, as well as respect for confidentiality are crucial.

As a result of its international dimension, the representativeness of the technologies exhibited and the topics addressed, CARTES is the ideal platform to bring together the IoT community. The trade show will be an opportunity to transform ideas into practical projects and to revive real opportunities for new business.

To achieve this, the Internet of Things area will welcome a new target of visitors from the communicating vehicles, smart buildings, leisure and consumer technology sectors.

This space will include an exhibition area, specific events and dedicated workshops.

A series of conferences specific to the Internet of Things will be held over the three days of the exhibition.

The SESAMES Awards celebrate 15 years

Established as undisputed badges of innovation, global benchmarks for smart card and identification manufacturers, they represent a real promotional springboard and give the winners a reputation and credibility guaranteeing their project’s success.

The Awards will be given a slight make-over for their 15th anniversary as the 10 winning categories have been adapted and renamed: Hardware, Software, Identification/Cartes ID, Digital Security, Transport, Banking/Commerce/Loyalty, Mobility, Trusted Internet/Authentication, e-transactions and finally Production & Tests.

The competition is open to all innovative projects in the relevant sectors and consistently attracts more and more candidates. In 2009, 309 applications were submitted for 10 prizes.

Selected by a panel of experts, the Awards will be presented at a prestigious ceremony organized in Paris, on the eve of the opening of CARTES & IDentification.

Finalist products will be on show in the SESAME Area located at the centre of the exhibition.

Sustainable development and the environmentally responsible approach

The CEO members of AFPC* signed the "End-of-life cards" charter at CARTES & IDentification 2007. What role has sustainable development played among manufacturers in the sector over the last three years?

This year, the SESAMES Awards will incorporate the concept of sustainable development into assessment of entries, which may therefore give one project an edge over another.

*Association of Card Manufacturers and Suppliers

CARTES & IDentification 2010 will also include…

The Conferences: undisputed world leader

Real concentration of information and expertise, the Conferences bring together for three days 1,300 delegates to discuss the latest technical developments, marketing and strategic issues and hear feedback on concrete case studies. Based on themes related to cards and also identification, the about 20 conferences (NFC and contactless, card security, debit and credit cards, manufacturing of cards, identification, M2M & IoT) are the best way to assess the market and an indispensable addition to a tour of the stands. Over the years, the Congress has become the forum of choice for communication between leading industrialists in the sector and international decision-makers.

The World Card Summit: heads of industry speak out

The trade show’s opening conference welcomes the leading CEOs in the sector. They will share their vision of the market and their views on the future of their industry, while Eurosmart will exclusively announce its latest figures. This presentation, the highlight of the Conferences, attracted more than 400 people last year.

A blog to discover or rediscover

The CARTES blog, launched on the eve of the 2009 event, received a warm welcome from the public. Building on this success, the Cartes blog went live in April 2010. The blog, intended to be a dynamic information source to complement the CARTES website, highlights this year’s key events with a selection not to be missed on any account. Information and in-depth articles will be accessible in real time prior to and during the trade show. It is aimed at a wide international readership and in particular at the event visitors. In a few clicks, anyone can now immerse themselves in the latest news from CARTES & IDentification. They can discover the latest innovations, discover market trends or explore a selection of the principal exhibitor announcements.

Make a note now in your diary of December 7^th, 8^th and 9^th 2010!

For the latest information on CARTES & IDentification visit:

www.cartes.com / www.blogcartes.com

Useful information

Dates: 7-8-9 December 2010

Place: Paris Nord Villepinte exhibition centre, France

Contacts

LEWIS PR

Jérôme Caron – Karine Monsallier – Lucie Robet

cartes@lewispr.com

Tel: +33 (0)1 55 31 98 08 – Fax: +33 (0)1 55 31 98 09

Permalink: http://www.businesswire.com/news/home/20100527005951/en/CARTES-IDentification-2010-Celebrates-25Th-Anniversary-Theme

CARTES & IDentification 2010 Celebrates Its 25Th Anniversary with the Theme of Innovation

From 7th to 9th December 2010 Paris Nord Villepinte exhibition centre

CARTES & IDentification 2010

25 years already

2010: The Internet of Things is setting up camp

For the 2010 event, the CARTES trade shows and congress are offering new inroads into new markets.

To achieve this, the Internet of Things area will welcome a new target of visitors from the communicating vehicles, smart buildings, leisure and consumer technology sectors.

This space will include an exhibition area, specific events and dedicated workshops.

A series of conferences specific to the Internet of Things will be held over the three days of the exhibition.

The SESAMES Awards celebrate 15 years

The competition is open to all innovative projects in the relevant sectors and consistently attracts more and more candidates. In 2009, 309 applications were submitted for 10 prizes.

Selected by a panel of experts, the Awards will be presented at a prestigious ceremony organized in Paris, on the eve of the opening of CARTES & IDentification.

Finalist products will be on show in the SESAME Area located at the centre of the exhibition.

Sustainable development and the environmentally responsible approach

This year, the SESAMES Awards will incorporate the concept of sustainable development into assessment of entries, which may therefore give one project an edge over another.

*Association of Card Manufacturers and Suppliers

CARTES & IDentification 2010 will also include…

The Conferences: undisputed world leader

The World Card Summit: heads of industry speak out

A blog to discover or rediscover

Make a note now in your diary of December 7^th, 8^th and 9^th 2010!

For the latest information on CARTES & IDentification visit:

www.cartes.com / www.blogcartes.com

Useful information

Dates: 7-8-9 December 2010

Place: Paris Nord Villepinte exhibition centre, France

Contacts

LEWIS PR

Jérôme Caron – Karine Monsallier – Lucie Robet

cartes@lewispr.com

Tel: +33 (0)1 55 31 98 08 – Fax: +33 (0)1 55 31 98 09

Permalink: http://www.businesswire.com/news/home/20100527005951/en/CARTES-IDentification-2010-Celebrates-25Th-Anniversary-Theme

Thursday, May 27, 2010

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From 7th to 9th December 2010 Paris Nord Villepinte exhibition centre

Contacts

From 7th to 9th December 2010 Paris Nord Villepinte exhibition centre

Contacts

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